The primary market is set to remain vibrant in December, with at least 10 companies planning to raise a combined Rs 20,000 crore through initial public offerings (IPOs), according to merchant bankers. Major players, including Vishal Mega Mart, which is set to launch an Rs 8,000 crore IPO, and Blackstone-backed International Gemmological Institute (India) , targeting Rs 4,000 crore, are among the firms tapping into the market.
Other companies such as Avanse Financial Services, Sai Life Sciences, and Paras Healthcare also plan to launch their IPOs. Avanse Financial Services is aiming to launch a Rs 3,500 crore IPO. This comprises a fresh issue of equity shares of up to Rs 1,000 crore and OFS of up to Rs 2,500 crore by the selling shareholders.
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The market sentiment is buoyed by recent election outcomes, with positive reactions from Maharashtra and Uttar Pradesh, which are expected to increase further fundraising efforts. However, some IPOs earlier this year have faced challenges in the secondary market, largely due to higher valuations during a bull run. Despite this, the IPO space has regained momentum, with funds from election results helping to revitalize market activity.
Companies are using the IPO route to raise capital for expansion, retire debt, and offer an exit strategy for existing shareholders. The primary market is experiencing strong interest from both issuers and investors across various sectors. Going ahead, over 30 IPOs are expected in the coming month. This huge pipeline could strain liquidity and the market’s ability to absorb them, especially if foreign investors keep pulling out funds, Saurabh Patwa, Head of Research and Portfolio Manager, Quest Investment Advisors, said.
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So far, 75 companies have raised around Rs 1.3 lakh crore in 2024, surpassing the Rs 49,436 crore raised by 57 companies last year. Retail investors have benefitted from strong IPO performance, with average listing gains of 27 per cent, and current returns reaching up to 105 per cent.
(With PTI Inputs)
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